Question should we add depreciation straight line method in this solution ? only need quide lines how combine method calculate and should we add depreciation straight line method please just this 2 points need to know .

Question should we add depreciation straight line method in this solution ? only need quide lines how combine method calculate and should we add depreciation straight line method please just this 2 points need to know .

Eureka Inc. manufactures a spare part "Brighto" During the year 2021, the company is evaluating the three investment alternatives: Proiect Red: Produce a new range of products, Proiect GREEN: Expansion of its existing product range. Project BLUE: Develop a new high-quality production plant. Any of the investment decision shall be implemented from 1st January 2022. If only one project is undertaken, the expected investments and cash inflows are as under: Expected Net Cash Inflows (Including Salvage Value) Project (Million $) Initial Outlay (Million $) Year Year Year Year Year 2022 2023 2024 2025 2026 Red 60 69 70 60 60 225 Green 75 60 70 Nil Nil 160 Blue 50 63 52 75 Nil 175 If projects Red & Green are jointly undertaken, there shall be no savings in investments required and also the net cash inflows shall remain the same. If projects Green and Blue are jointly undertaken, savings are possible only in investment because of the machines acquired can be used in both production processes. The combined investment required for projects Green & Blue is $334 million. If projects Red & Blue are jointly undertaken, there are combined savings of $0.5 million each year to be achieve in marketing expenses and production cost of the products but no savings are expected in investments. If all the three projects are taken Simultaneously, all the savings given above shall be achieved jointly, however, an extra $5 million extension cost for the production plant will be necessary on January 01, 2022, as space and capacity are not available for all three projects. Eureka Inc.'s WACC is 11 %. REQUIREMENT (C): Calculate PBP, DPBP, NPV, PI and IRR for each single project and for each combination of projects, if Tax Rate is 10% and salvage value is taxable. Salvage Values of Project Red, Green and Blue are 56, 54 and $2 (in millions), respectively. The Inflation Rate is Nil for all projects. Also, decide which single project or a combination of projects is more beneficial. Eureka Inc. manufactures a spare part "Brighto" During the year 2021, the company is evaluating the three investment alternatives: Proiect Red: Produce a new range of products, Proiect GREEN: Expansion of its existing product range. Project BLUE: Develop a new high-quality production plant. Any of the investment decision shall be implemented from 1st January 2022. If only one project is undertaken, the expected investments and cash inflows are as under: Expected Net Cash Inflows (Including Salvage Value) Project (Million $) Initial Outlay (Million $) Year Year Year Year Year 2022 2023 2024 2025 2026 Red 60 69 70 60 60 225 Green 75 60 70 Nil Nil 160 Blue 50 63 52 75 Nil 175 If projects Red & Green are jointly undertaken, there shall be no savings in investments required and also the net cash inflows shall remain the same. If projects Green and Blue are jointly undertaken, savings are possible only in investment because of the machines acquired can be used in both production processes. The combined investment required for projects Green & Blue is $334 million. If projects Red & Blue are jointly undertaken, there are combined savings of $0.5 million each year to be achieve in marketing expenses and production cost of the products but no savings are expected in investments. If all the three projects are taken Simultaneously, all the savings given above shall be achieved jointly, however, an extra $5 million extension cost for the production plant will be necessary on January 01, 2022, as space and capacity are not available for all three projects. Eureka Inc.'s WACC is 11 %. REQUIREMENT (C): Calculate PBP, DPBP, NPV, PI and IRR for each single project and for each combination of projects, if Tax Rate is 10% and salvage value is taxable. Salvage Values of Project Red, Green and Blue are 56, 54 and $2 (in millions), respectively. The Inflation Rate is Nil for all projects. Also, decide which single project or a combination of projects is more beneficial